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Bank makes change

Wells-Fargo revises pay plan

NEW YORK — Wells Fargo announced a complete restructuring Tuesday of how it pays tellers and other bank branch employees, with incentives now tied to how often customers use their accounts, as the company tries to right itself after a scandal over its aggressive sales practices.

The long-anticipated plan has been considered a high priority for CEO Tim Sloan and Mary Mack, the head of Wells Fargo’s community bank division — both of whom took those jobs after the scandal emerged. Wells Fargo had already announced in September that it was getting rid of the sales goals that led employees to open up to 2 million unauthorized accounts.

Wells Fargo’s 70,000-plus front-line bank employees will no longer be given incentives for how many new accounts they open or for meeting sales goals. They will instead receive part of their overall salary based on how the products they sell are used, with one component also based on independently measured customer service scores for their branch locations.

“Do they use the products they have with us? Do they think of us as their primary bank? Are we growing customers who consider us their primary bank? These are the metrics we are now measuring,” Mack told The Associated Press.

Accounts that are used frequently, such as those where customers set up direct deposits or use debit cards often, will be a positive factor for an employee’s pay. Idle accounts will not, and an account won’t be a factor toward incentives until it’s been open three months.

Mack acknowledged the bank still has work to do to restore its image, saying the new compensation plan is “an answer, not the answer.”

“This is just one step to restore trust,” she said.

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